Rate rallies to start the week, some light stops reported. More upside now due on Tuesday as the market is shrugging off bearish news. Aggressive traders can look to ADD to open longs anytime looking for a push through and a close back above 1.5000. Some spillover from EURO likely.

Analysts suggest 100 BP rate cut probably already fully factored in; good bids reported but supply seen from semi-official names. Traders note solid two-way action with stops cleared across several levels in both directions. Sellers hold control above 1.5100 area so far; OK to buy if flat on a dip.

Profit-taking likely to result in a squeeze on the further strength. Technical trade overnight again. Traders note liquidity is only moderate and still on the lower side.

BP/USD Daily
Resistance 3: 1.5200
Resistance 2: 1.5100/10
Resistance 1: 1.5050
Latest New York: 1.4912
Support 1: 1.4550
Support 2: 1.4460/70
Support 3: 1.4420

Data due Tuesday: All times EASTERN (-5 GMT)
4:30am GBP Manufacturing Production m/m
4:30am GBP Trade Balance
4:30am GBP DCLG HPI y/y
4:30am GBP Industrial Production m/m
Tentative GBP MPC Member Sentance Speaks
7:01pm GBP NIESR GDP Estimate

Forex Analysis by Jason Alan Jankovsky at ForexPros.com. For more details about Forex Trading and Tips for decent earnings through Forex Trading, Please check http://www.forexpros.com